Govt 2305 Chap 17

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Govt 2305 Chap 17
2014-08-03 22:05:17
Govt 2305 Chap 17 Test 4
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  1. Know how the authors of your textbook define economic growth.
    an annual increase in the gross domestic product (GDP) or monetary value of all goods and services produced in a nation each year
  2. Understand the difference between fiscal and monetary policy.
    fiscal:  all govt actions having to do with spending and taxes

    monetary:  Fed policies that affect how much money is available to businesses an individuals frm banks and how much it costs
  3. Know how the Federal Reserve Board controls the economy.
    responsible for deciding monetary policies that dampen inflation and provide stable prices, usually by central bank management of interest rates
  4. When does the government increase their overall spending?
    when the economy is stagnant or declining
  5. What makes America's tax system unique?
    • it is uniquely complex
    • few people can understand it and their services are mainly available to those who can afford it
  6. What is a budget deficit?
    the amount by which annual govt expenditures exceed revenues
  7. Describe the two types of welfare state programs in the US.
    • TANF replaced AFDC
    • states use block grants to give both direct cash assistance to families and money for child care, education and training to help recipients enter paid employment
  8. Compare the costs of social insurance and means-tested programs.
    • social insurance represents the largest single portion of the federal budget
    • means-tested are much smaller
  9. How is Social Security funded?
    funded by a payroll tax on employees and employers under the Federal Insurance Contributions Act (FICA)
  10. What is Medicare?
    Federal health insurance program for the elderly and the disabled
  11. Describe TANF.
    • Temporary Assistance to Needy Families
    • program that provides income and services to many poor families
    • has benefit time limits and work requirement
  12. How are food stamp benefit levels and Medicaid eligibility rules set?
    food stamp benefit levels are set by the individual states under general federal guidelines and states vary substantially in their generosity

    Medicaid eligibility are for people who are defined as "medically indigent"  (anyone falling at or under 133 percent of the federal poverty line, including childless adults or who receive food stamp or TANF benefits